Feds to Delay Employer PPACA Notice

The Patient Protection and Affordable Care Act (PPACA) requires employers to provide notice to employees about the existence of State-based insurance exchanges.  The purpose of the notice is to provide employees necessary information to understand the availability of new health plan options and to help employees compare those options against costs and benefits available through the employment-based coverage.   PPACA requires employers to provide this notice by March 1, 2013 or, you guessed it, face potential penalties!  So what are employers to provide?

Well, we don’t quite know.  To date, neither the federal government nor the state exchanges have provided guidance regarding the layout or content of the notice.  As with several other areas of reform implementation the reality of delays in the regulatory process trump the stated deadlines.  With no guidance employers have nothing to provide. 

Fortunately, it is expected the federal government will delay the notice requirement, and employers will escape the looming deadline, at least for the time being.  A new date has not yet been issued, but it is widely anticipated the feds will enforce a new deadline in the Fall, closer to the October 1, 2013 kick-off date for open enrollment in the exchanges.   Employers should watch for an announcement soon.